Tuesday, October 25, 2011

New Guidelines Published by BVI FSC

The British Virgin Islands Financial Services Commission has published Guidelines in Relation to use of Restricted Company Names, having effect from 17 October, 2011. In the Introduction to the document it is stated that the Commission is empowered by the BVI Business Companies Act, 2004 to specify words or phrases to be restricted for purposes of incorporation, continuation, etc. The BVI BCA introduces the concept of restricted company name whereby a company that has as part of its name a restricted word of phrase cannot be registered unless it has the written consent of the Commission, whether in relation to incorporation, continuation, merger or consolidation.

Part I of the document relates to the Regulatory legislation, which prohibits the use by any person of certain specific names or phrases, and covers the terms named in Banks and Trust Companies Act, 1990, Company Management Act, 1990, Insurance Act, 2008, Securities and Investment Business Act, 2010 (SIBA). The second part of the Guidelines relates to Registry legislation (generally companies), and covers current requirements in relation to company name endings, restrictions on the use of company names. It also includes BVI Business Companies (restricted company names) notice, 2011. Part III of the document is the Guide to Applying for Consent/Approval for Use of a Restricted Name.

The Schedule includes Application for the consent or approval of the Financial Services Commission to use a restricted name. The Guidelines were approved by the Board of Commissioners on 30 August, 2011, and issued by the Financial Services Commission on September 15, 2011.

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